Financial and Managerial Accounting: Information for Decisions
Financial and Managerial Accounting: Information for Decisions
6th Edition
ISBN: 9780078025761
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 13, Problem 2DQ
To determine

Comparative Financial Statements:

It refers to the past details of same items of consecutive income statements or balance sheet of the company. This statement is generally helpful to review changes in the account balance of particular person on a yearly basis.

Common Size Financial Statements: It refers to all the items of financial statements that are represented in a common basis. Balance sheets are commonly sized based on the expression that represents all items as percentage of its total assets or equities.

To identify: The difference between comparative financial statements and common-size comparative statement.

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